Exhibit 1 - Agenda Information SheetCity of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: March 25, 2025
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with NorthStar Energy Solutions, LLC, for substation
construction services for Denton Municipal Electric; providing for the expenditure of funds therefor; and
providing an effective date (CSP 8574 – awarded to NorthStar Energy Solutions, LLC, in the not-to-exceed
amount of $22,090,000.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) has three (3) substation projects, six (6) substation addition projects, and
one (1) substation reconstruction project approved in its Capital Improvement Plan (CIP) within the next
five (5) years, and are shown in the table below. In planning for the construction of multiple substations,
DME has structured designs into standard units that can be used in most applications. Standardizing and
unitizing the design also makes it possible to procure construction services for multiple stations in advance.
Competitive Sealed Proposal (CSP) 8574 is structured in this standardized construction approach.
The contractor will provide several construction services which include installation of the ground grid,
conduit, and concrete foundations below grade; installation, erection, and connection of steel, equipment,
and aluminum bus above grade; and pulling cable for equipment control and protection. All of these services
are arranged in standard units. Each standard unit has a cost that will include the total installation of the unit
which may consist of several pieces of equipment. Not all CIP approved projects have been fully designed
but this proposal allows for increases/decreases in unit standards and includes hourly costs for personnel
and equipment to apply to miscellaneous items or small construction projects. CSP 8574 was prepared to
solicit proposals for substation construction services to be awarded to a single contractor.
Request for Proposals was sent to 1,128 prospective suppliers, including 76 Denton firms. In addition,
specifications were placed on the Procurement website for prospective suppliers to download and advertised
in the local newspaper. Seven (7) proposals were received, references were checked, and proposals were
evaluated based upon published criteria including schedule, experience, safety record, and price. Best and
Final Offers (BAFO) were requested from the top three (3) firms. Based upon this evaluation, NorthStar
Energy Solutions, LLC was ranked the highest and determined to be the best value for the City.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Location FY24-25 FY25-26 FY26-27 FY27-28 FY28-29
Underwood Substation $4,950,000
SSVT Projects 30,000
Denton West Brazos Tie-In $1,030,000
Masch Branch Xfmr Add. 910,000
Jim Christal Xfmr Add. $910,000
RD Wells Xfmr Add. 910,000
RD Wells Upgrade $630,000
Southwest Substation 4,950,000
Denton West Auto 345kV
Interchange
$4,900,000
Denton West Auto 345kV Switch 2,870,000
Yearly Total $4,980,000 $1,940,000 $1,820,000 $5,580,000 $7,770,000
Total Contract Estimate: $22,090,000
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 24, 2025, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with NorthStar Energy Solutions, LLC, for substation construction services for Denton
Municipal Electric, in a not-to-exceed amount of $22,090,000.
PRINCIPAL PLACE OF BUSINESS
NorthStar Energy Solutions, LLC
Grand Prairie, TX
ESTIMATED SCHEDULE OF PROJECT
Work will be authorized based on project schedules.
FISCAL INFORMATION
The costs for materials and services purchased under the proposed agreement will be funded from DME’s
Capital Improvement Projects program. The majority of work proposed will be in the transmission category,
therefore, costs for the associated transmission projects will be recovered through the Public Utility
Commission of Texas, Transmission Cost of Service Program (TCOS). Requisitions will be entered on an
as-needed basis. The budgeted amount for this item is $22,090,000.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Presentation
Exhibit 4: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Mark Zimmerer 940-349-7169.
Legal point of contact: Marcella Lunn at 940-349-8333.